Note 2 - Investment Securities

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 2. Investment Securities

(in thousands)

The amortized cost and estimated fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive (loss) income at December 31, 2022 and 2021 were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized
2022	Cost		Gains		Losses		Fair Value
Securities available-for-sale
Mortgage-backed securities	$	107,055	$	-	$	10,083	$	96,972
State, County, Municipals		134,906		-		30,993		103,913
Other securities		500		-		63		437
Total	$	242,461	$	-	$	41,139	$	201,322

			Gross		Gross
	Amortized		Unrealized		Unrealized
2021	Cost		Gains		Losses		Fair Value
Securities available-for-sale
Obligations of U.S. Government agencies	$	4,969	$	-	$	269	$	4,700
Mortgage-backed securities		411,729		42		12,180		399,591
State, County, Municipals		230,359		700		4,008		227,051
Other securities		500		-		7		493
Total	$	647,557	$	742	$	16,464	$	631,835

The amortized cost and estimated fair value of securities HTM and the corresponding amounts of gross unrealized gains and losses at December 31, 2022 were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized
2022	Cost		Gains		Losses		Fair Value
Securities held-to-maturity
Obligations of U.S. Government agencies	$	4,002	$	-	$	367	$	3,635
Mortgage-backed securities		309,748		-		24,654		285,094
State, County, Municipals		92,840		-		6,277		86,563
Total	$	406,590	$	-	$	31,298	$	375,292

There were no securities held-to-maturity at December 31, 2021.

The following tables show the gross unrealized losses and fair value of the Company’s investments classified as AFS and HTM investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2022 and 2021.

A summary of unrealized loss information for AFS and HTM securities, categorized by security type follows:

December 31, 2022
Available-for-sale	Less than 12 months				12 months or more				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage backed securities	$	70,652	$	3,838	$	26,320	$	6,245	$	96,972	$	10,083
State, County, Municipal		45,200		9,027		58,713		21,966		103,913		30,993
Other securities		-		-		437		63		437		63
Total	$	115,852	$	12,865	$	85,470	$	28,274	$	201,322	$	41,139

Held-to-maturity	Less than 12 months				12 months or more				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. Government agencies	$	-	$	-	$	3,635	$	367	$	3,635	$	367
Mortgage backed securities		17,882		1,333		267,212		23,321		285,094		24,654
State, County, Municipal		15,059		781		71,504		5,496		86,563		6,277
Total	$	32,941	$	2,114	$	342,351	$	29,184	$	375,292	$	31,298

December 31, 2021
Available-for-sale	Less than 12 months				12 months or more				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. Government agencies	$	4,700	$	269	$	-	$	-	$	4,700	$	269
Mortgage backed securities		376,644		11,535		19,986		645		396,630		12,180
State, County, Municipal		175,520		4,008		119		-		175,639		4,008
Other securities		-		-		493		7		493		7
Total	$	556,864	$	15,812	$	20,598	$	652	$	577,462	$	16,464

The unrealized losses shown above are due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality. The Company does not intend to sell any of the securities in an unrealized loss position, and it is more likely than not that the Company will not be required to sell any such security prior to the recovery of its amortized cost basis, which may be at maturity. None of the unrealized losses disclosed in the previous tables are related to credit deterioration. As such, the Company did not record any other-than-temporary impairment for the years ended December 31, 2022 or 2021.

The amortized cost and estimated fair value of securities at December 31, 2022, by contractual maturity and investment type, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	721	$	657	$	-	$	-
Due after one year through five years		3,152		3,042		-		-
Due after five years through ten years		5,275		4,853		-		-
Due after ten years		126,258		95,798		96,842		90,198
Residential mortgage backed securities		94,226		84,481		250,615		230,771
Commercial mortgage backed securities		12,829		12,491		59,133		54,323
Total	$	242,461	$	201,322	$	406,590	$	375,292

	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
December 31, 2021
Due in one year or less	$	216	$	217	$	-	$	-
Due after one year through five years		1,895		1,924		-		-
Due after five years through ten years		4,226		4,287		-		-
Due after ten years		229,491		225,816		-		-
Residential mortgage backed securities		332,779		323,736		-		-
Commercial mortgage backed securities		78,950		75,855		-		-
Total	$	647,557	$	631,835	$	-	$	-

Investment securities with carrying amounts of $462,954 and $371,190 at December 31, 2022 and December 31, 2021, respectively, were pledged as collateral for public deposits and securities sold under agreement to repurchase.

Gross realized gains and losses are included in net gains on sales of securities in the Consolidated Statements of Income. Total gross realized gains and gross realized losses from the sale of investment securities for each of the years ended December 31 were:

	2022		2021		2020
Gross realized gains	$	-	$	4,257	$	1,656
Gross realized losses		-		2,879		827
Net realized gains	$	-	$	1,378	$	829